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Barangaroo helps boost Lend Lease profit

Builder and developer Lend Lease has increased its first half profit by 39 per cent.

Lend Lease made a net profit $302.3 million in the six months to December 31, up from $217.8 million in the same period the previous year.

Its Australian business delivered much of the profit growth, due in part to the first commercial agreements for Lend Lease’s Barangaroo project on Sydney harbour.

Lend Lease’s local business posted a profit of $304 million, up from $207 million in the previous corresponding period.

Chief executive Steve McCann said the company was in a strong position, with a project pipeline worth about $21.4 billion.

He said the company had ‘‘good visibility of earnings in the 2013 financial year’’, but did not provide more specific financial guidance.

Several office tenant agreements at Barangaroo have been signed with major financial companies, and Lend Lease has also agreed to develop a hotel on the site for James Packer’s company Crown.The company declared an unfranked interim distribution of 22 cents.

Lend Lease also said it had altered its remuneration structure for Mr McCann to limit the cash component of any short-term incentives to $800,000.